FAAN allegedly slashes workers’ salaries due to loss of revenue

The Federal Airports Authority of Nigeria (FAAN) has revealed that it may not be able to pay the full salaries of members of staff from May 2020; due to economic disruption as a result of the COVID-19 pandemic.

However, FAAN reassured workers that as soon as the revenue situation improves; the balance would be paid.

1st News gathered that there has been palpable fear amongst workers over salary payment by FAAN; following the suspension of both local and international flights in April.

This is because, with the flight suspension, the main source of revenue of the agency has been shut.

The FAAN announced the decision to cut staff salary in an internal memo with reference number FAAN/HQ/ADMIN/2020O5 dated May 19, 2020; and signed by General Manager, Administration, FAAN, M.D. Musa.

Titled, “Notice on payment of staff salary” addressed to all staff; the memo stated that the measure was to ensure the survival of the organization.

It was learned that junior staff would be paid their full salary; while Senior staff from levels 10 and above would take between 30 to 50 per cent pay cut.

Due to the economic downturn as a result of the pandemic, many airlines had since April cut salary staff by as much as 80 per cent, in addition to asking their workers to proceed on compulsory leave without pay.

Similarly, the Nigerian Airspace Management Agency (NAMA) was said to have held meetings with representatives of its workers over plan to pay half salary for the month of May.

Earlier in April, some stakeholders in the industry have advocated urgent grants for aviation agencies like FAAN especially which runs its 22 airports including salary payment entirely with its internally generated revenue (IGR).

An industry player, Fortune Idu had earlier warned that FAAN might not be able to pay salary; unless the Federal Government urgently intervened.

Idu, Chairman, NIGAV Centre; and Airport Business Summit, said the COVID-19 has had a negative impact on the authority which he described as the strongest player within the aviation industry.

He suggested that the Federal Government should assist the agency in the recovery of outstanding debts; currently owed it by airlines, agencies, and states.

More so there should be a state intervention to keep the airports running amidst the COVID-19 pandemic; while charging the authority to also look inward and close wastage gaps.